Ethereum (ETH), the second-largest cryptocurrency by market value, has recently lost a crucial support level, prompting analysts to voice their concerns. With Bitcoin (BTC) dropping to $55,606 within the last 24 hours, ETH is now trading at approximately $2,400. This article delves into various analysts’ perspectives on ETH’s trajectory over the past day.
Posedion’s ETH Price Outlook
Prominent technical analyst Crypto Posedion provided an assessment earlier today, emphasizing the current market conditions after the recent decline. He pointed out a lack of buyer enthusiasm, suggesting that an entry opportunity might arise in the green zone.
“The price testing the daily demand level more than four times without any reaction indicates that $2,450 will not hold again. I might be wrong, but I closed my long-term trades at the breakeven point. I expect lower levels below $2,300. Buyers may find a buying opportunity in the green box,” Posedion stated.
Trader Fred’s ETH Chart Analysis
Trader Fred shared his predictions for ETH’s short and medium-term movement, noting that closures below a specific black line would signal a continued downtrend. He also highlighted unmet CME gaps above, indicating potential entry points.
“Above the black line means an uptrend, below it means the pullback will continue. We’ve just touched the liquidity (orange lines) and still have CME gaps above to revisit,” Fred commented.
XRP and ETH Chart Insights
Cryptoinsightuk observed intriguing trends in the XRP/ETH pair. While the higher lows are encouraging, the current market sentiment suggests that XRP is unlikely to gain strength against ETH for the time being. The analyst added that daily and weekly closures above marked zones could pave the way for further increases.
Concrete Inferences for Investors
Based on the analysis, investors might consider the following strategic points:
- Monitor the $2,450 level closely; repeated tests without a bounce suggest greater downside risk.
- Look for potential buying opportunities below $2,300, especially in the highlighted green zones.
- Pay attention to closures below key trend lines to gauge the continuation of the downtrend.
- Watch for unmet CME gaps above current prices as potential reversal points.
- Track daily and weekly closures above key resistance levels for signs of a bullish reversal.
Will Ethereum (ETH) Price Increase?
The possibility of BTC hitting new lows below $55,000 makes a positive divergence for ETH unlikely. Additionally, the deflation narrative for ETH appears to be concluding. Significant reductions in transaction fees following the second major update post-PoS transition could catalyze further movement. An increase in risk appetite and BTC closing above $70,000 are necessary to observe a substantial ETH price reversal.
The circulating supply’s upward trend, starting in April, is expected to lead to positive inflation. For ETH to experience a price rebound, investor sentiment needs to improve, and BTC must secure a higher closing price.